[Federal Register Volume 81, Number 75 (Tuesday, April 19, 2016)]
[Notices]
[Pages 23077-23079]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-08987]
-----------------------------------------------------------------------
DEPARTMENT OF TRANSPORTATION
Federal Transit Administration
[Docket No. FTA-2016-0004]
Notice of Buy America Waiver for Ductless Mini-Split Air
Conditioning Systems
AGENCY: Federal Transit Administration, DOT.
ACTION: Notice of Buy America waiver.
-----------------------------------------------------------------------
SUMMARY: In response to requests received from the Indianapolis Public
Transportation Corporation (IPTC) for a Buy America non-availability
waiver for the procurement of an inverter-driven ductless mini-split
system air conditioner; the York Adams Transportation Authority (YATA)
for ductless split system air conditioning units; the Key West Transit
(KWT) for a ductless mini-split mechanical system for the City of Key
West Public
[[Page 23078]]
Transportation Facility; and the Springfield Redevelopment Authority
(SRA) for ductless mini-split air conditioners for the Union Station
Regional Intermodal Transportation Center in Springfield,
Massachusetts, the Federal Transit Administration (FTA) hereby waives
its Buy America requirements, finding that the materials for which the
waivers are requested are not produced in the United States in
sufficient and reasonable quantities and of satisfactory quality. This
waiver is limited to the specific procurements identified herein.
DATES: This waiver is effective immediately.
FOR FURTHER INFORMATION CONTACT: Laura Ames, FTA Attorney-Advisor, at
(202) 366-2743 or [email protected].
SUPPLEMENTARY INFORMATION: The purpose of this notice is to announce
that FTA has granted non-availability Buy America waivers to IPTC,
YATA, KWT, and SRA for the procurement of ductless split system air
conditioning units 49 U.S.C. 5323(j)(2)(A); 49 CFR 661.7(c).
With certain exceptions, FTA's Buy America requirements prevent FTA
from obligating an amount that may be appropriated to carry out its
program for a project unless ``the steel, iron, and manufactured goods
used in the project are produced in the United States.'' 49 U.S.C.
5323(j)(1). A manufactured product is considered produced in the United
States if: (1) All of the manufacturing processes for the product take
place in the United States; and (2) all of the components of the
product are of U.S. origin. A component is considered of U.S. origin if
it is manufactured in the United States, regardless of the origin of
its subcomponents. 49 CFR 661.5(d). If, however, FTA determines that
``the steel, iron, and goods produced in the United States are not
produced in a sufficient and reasonably available amount or are not of
a satisfactory quality,'' then FTA may issue a non-availability waiver.
49 U.S.C. 5323(j)(2)(B); 49 CFR 661.7(c). ``It will be presumed that
the conditions exist to grant this non-availability waiver if no
responsive and responsible bid is received offering an item produced in
the United States.'' 49 CFR 661.7(c)(1).
By way of background, IPTC is constructing its Downtown Transit
Center and the contractor and subcontractor hired for the project,
Weddle Bros. Building Group, LLC and Commercial Air Inc., previously
certified Buy America compliance. After awarding the contract,
Commercial Air became aware that the inverter-driven ductless mini-
split system air conditioner selected for the center, was non-
compliant. Enviroair manufactures this air conditioning system in
China, although certain equipment is stocked and shipped from Utica,
New York. IPTC selected the Enviroair system, which will be installed
in the transit center's information technology room, because it will
keep the room constantly cool and is the only way to cool the room in
the space provided. IPTC also hopes to receive Silver LEED
certification for the transit center and the Enviroair system is
critical for achieving this certification. IPTC identified six other
ductless mini-split air condition system manufacturers, all of which
are manufactured abroad.
YATA seeks to install multiple ductless split system air
conditioning units in its Operations and Maintenance Facility. These
units will regulate environmental conditions in areas with specific
temperature and/or humidity requirements, such as in server rooms or
elevator machine rooms, or in rooms where conventional ductwork is not
possible. YATA's successful bidder certified Buy America compliance,
although later learned that the units from ECR international-EMI-USA of
Utica, New York, are in fact manufactured abroad. YATA identified one
ductless split system unit that is manufactured in the U.S. by Modine,
however, this unit has a larger capacity than YATA's project
requirements for the Operations and Maintenance Facility. Use of this
unit would result in constant compressor cycling and a limited
lifespan. Moreover, YATA states that it cannot use a standard split
system unit as an alternative to the ductless split system, because a
standard system is incapable of treating ventilation air and the
required ductwork cannot be installed in locations that need
environmental control. Therefore, no domestic manufacturer exists that
would satisfy YATA's project needs.
KWT is completing construction of its City of Key West Public
Transportation Facility, which is a U.S. Green Building Council LEED
project and includes many sustainable and efficient elements, including
that of the HVAC system. According to KWT's waiver request, the HVAC
system is Buy America-compliant, with the exception of the VRF
mechanical system which will be placed in three of the electrical,
mechanical, and server rooms in the new facility. KWT states that these
rooms must be able to function separately from the main operations
building. KWT also is building this facility to be LEED silver
certified and the energy-efficient VRF system will help KWT attain this
certification. The VRF system sought will also better accommodate
spatial constraints since the new facility is surrounded by a landfill,
school bus parking lot, and other construction projects. It is also
located in a highly-trafficked area, which limits the footprint of the
project. Unlike other HVAC systems, the ductless mini-split system will
be able to fit into the available space.
KWT is installing a Carrier ductless mini-split system in the
facility. Before selecting this system, KWT conducted extensive
research and reached out to domestic manufacturers, however, KWT was
unable to find a domestically manufactured mini-split air conditioning
system. KWT states that it contacted the remaining America manufacturer
of VRF HVAC systems and this manufacturer ceased production two years
ago.
SRA is constructing the Union Station Regional Intermodal
Transportation Center, which includes renovation of the existing
Terminal Building and the construction of a six-story parking garage.
SRA is seeking to procure nine ductless mini-split air conditioners for
the construction project. Each building within the transportation
center will have its own HVAC system. SRA states that it is necessary
to install ductless mini-split air conditioners in each individual room
in order to maintain environs in each room. The air conditioners will
be independent of other heating and cooling systems and will be backed
up by a generator. Initially, SRA's contractor believed that Trane's
product was Buy America-compliant. Subsequently, however, Trane
notified SRA that its product was mislabeled and is actually foreign-
made. SRA also contacted 8 other companies who manufacture ductless
mini-split air conditioners, although none of these companies
manufacture the product domestically. As a result, SRA is seeking a
non-availability waiver for the ductless mini-split air conditioners as
there is no domestic manufacturer.
FTA also conducted a scouting search for ductless air conditioning
systems through its Interagency Agreement with the U.S. Department of
Commerce's National Institute of Standards and Technology (NIST).
Although the scouting search identified two domestic manufacturers as
potential matches for this opportunity, upon further investigation
neither company currently produces a system that would meet the stated
specifications.
On Tuesday, March 22, 2016, and in accordance with 49 U.S.C.
5323(j)(3)(A), FTA published a notice in the Federal
[[Page 23079]]
Register announcing the Buy America waiver request (81 FR 15409),
seeking comment from all interested parties, including potential
vendors and suppliers. The comment period closed on March 29, 2016, and
no comments were received. Based on the representations from IPTC,
YATA, KWT, and SRA, the lack of any comments, and the fact that the
NIST supplier scouting search did not identify a domestically made air
conditioner system, FTA is granting a non-availability waiver for the
procurements of the ductless air conditioning systems described above
on the grounds that the manufactured products are not available in the
U.S. This waiver is limited to the specific procurements described in
this waiver.
Issued on April 14, 2016.
Dana Nifosi,
Deputy Chief Counsel.
[FR Doc. 2016-08987 Filed 4-18-16; 8:45 am]
BILLING CODE 4910-57-P